Younger Americans Should Repudiate US Debt

As opposed to the old, who borrowed money in order to bail out Wall Street and bomb countries that never attacked us.

 

Illegals will come here whether they have jobs or not

These are people who have been told they can get free healthcare and free education that American citizens will pay for

 

LOL... you guys are soooo funny.... That you could even write that with a straight face... Wasn't it you who repeatedly told us that debt wasn't bad and that the 11T Obama wracked up ALL BY HIMSELF wasn't a real problem??

So which is it today? Good? Bad?? or just orange man bad.??

 

You dismiss economic "experts" but you don't seem to understand impact and benefit of having the US dollar as the world reserve currency very well. It is not just about inflation and nor is it just about the ratio of Debt to GDP. It is not that these things are not factors - but you are missing a large part of the picture.

What you did not mention was interest on debt as a ratio of income. When the ratio of annual interest to revenue hits 30% - red lights and alarm bells go off at the IMF - the ship is taking on water faster than it can be bailed out and if something is not done soon the ship will sink - and they start to issue warnings and take action in some cases.

We were over 25% just prior to Clinton. It wasn't that Clinton and Congress wanted to decrease spending - they had to. Through a combination of tax hikes - reigning in spending - along with a "white swan event" - the internet/tech/computer revolution - a crisis was averted.

Since 2000 - the debt went from 5 to 20 Trillion but, from 2000 the interest on our debt has been running around 420 billion/yr up to around 2016. The reason for this is because the ave interest rate on the debt went from well over 7% to 2.25 %.

The problem is that we had to mess with the invisible hand to get interest rates this low and now the hand is hitting back and the Fed has no bullets left in its gun.

One thing that allows us to keep interest rates on our debt so low is being the sole reserve currency. Your comments on the Euro don't relate much - and nor Japan. At some point an alternative will be created ... the day a viable alternative exists will be marked in the history books as the defacto end of the US economic empire.

 

Was not I.
Go troll elsewhere.

Was it you, and every other RWer at PF and in the country, crying daily for balanced budget amendment?

So which is it? Balanced budget or not? Or was it the black man bad.

 

So do you agree with "most Americans" that it's the gov't that owes all those trillions?

 

if the jobs disappear the majority of illegals disappear other then one maybe with family here that are Americans and they take them in

 

Soyou think the shoeless peasant from central America dragging a child across the border is just here to pick fruit?

I dont think so

The sob story they tell is about gang violence and death in the miserable country they come from

And liberals like you will not send them back whether they choose to work or not

 

What I find comical is how Trump caused us to take on a huge amount of debt which he sold to The Following as a sure fire way to get to sustained 2.9% GDP growth. Last qtr. GDP growth was 2.1%. The same kind of number The Following said was horrible when Obama was prez. But now they think the economy is booming.

 

And now we're heading into a recession. We're already seeing it in my business, which works across all types of industry.

 

The debt increased by roughly 8 Trillion during the Obama fiscal years but no need to quibble over a Trillion - this is still a huge number. The question however is whether or not this is a valid metric for fiscal responsibility.

Obama walked into a roughly 1.4 Trillion dollar deficit at a time when the the economic ship on fire - one that was burning out of control. Trump walked into a roughly 500 Billion dollar deficit at a time when the economy was good.

The idea that a President can wave a magic want and reduce a 1.4 Trillion dollar deficit to zero in a year (revenue of 2.1 vs spending of 3.5 Trillion) is silliness. Perhaps Obama should have let the financial system fail - but - then the right would be criticizing this decision as well. The fact of the matter is that stimulus spending was bipartisan in any case.

Regardless - the deficit was reduced from 1.4 Trillion down to 500 Billion over Obama's full term.

What Trump has done is increase the deficit in good economic times - this is fiscal irresponsibility - to do this in a rising interest rate environment is the pinnacle of fiscal irresponsibility.

That said - neither Trump or Obama addressed the systemic spending issues related to our 3.5 Trillion dollar total healthcare spend (2017 stat) or our excessive military spend - so both get a big F with respect to fiscal responsibility.

 

they come here for a better life, if their were no jobs, they would not come here illegally, they would come here legally to get those jobs

 

Millenials can't pay off anything because most are still living with mommy and daddy.

 

Most?
Can you offer up some proof of that claim?

 

They come here for the food stamps and free healthcare

They think America is rich enough to support everyone in central America jobs or no jobs

 

And so do the libs holding the gate open for them

 

Deficits fell after some of the most reckless spending ever.

Your point would be like me over spending by 1000 a month, and reducing that to only 300 per month overspent (70% decrease) and saying good job.

Shouldn't have over spent by 1000 in the first place.

 

Do you care about deficits?
They continue to go up. Even in this strong economy. What happens when we have the next downturn?
Is the deficit really and truly a concern?

 

illegals do not get foodstamps and free healthcare

 

They are getting free healthcare every time they show up at a hospital emergency room

And thats just the starting point for democrats who are babbling about Medicare For All

As for food stamps anchor babies open that door for them

How can liberals know so little about the world they live in?

 

Boomers are mommy and daddy. So if the millennial generation turned out badly, it's just another failure by boomers.

 

First thing I've heard you say that I totally agree with.

 

Ya, I was a regular poster back in my single/university days. Then I got a job, posted much less, now I'm married so I basically never come here. I also feel, and I don't know if this is true or just my biases at work, that this place used to be significantly better. Anyways, I don't have time to post here much, nor do I see much value in it, as people never actually change their minds.

On to the point of your post, I think you radically underestimate how bad the correction would be, and offer no alternative to replace it. The US refusing to pay its debt would see a collapse of the global economy unrivaled in human history. Our currency would collapse, the stock market would collapse, and the global economy based around U.S. economic dominance would collapse. Something would step in to replace it, but it would certainly be centered around China or possibly the EU, sidelining the US for a long sad decline. Also, whatever came after it wouldn't necessarily be better. That is the problem with people who want "revolution," they recognize the flaws in the system, but never consider the system that comes after could very well be worse. What followed US default would almost certainly be worse.

 

What happens when interest rates go up to 15% or 20%? Interest on the debt will crowd out our other expenses.

The whole monstrosity will come crashing down. And anyone who favored increased federal spending will have blood on their hands.

 

So long as the world is run on petro-dollars US debt is irrelevant. The thing to really watch is trade agreements between the larger nations and the petroleum producers. If China can convince Saudi Arabia to accept the RMB instead of dollars, the debt might begin to matter.